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How to benefit from 0 percent interest rates on balance transfers?

Answered on January 6, 2011

The rules governing the credit policy states that whenever a loan amount or credit is taken, it needs to be repaid along with the interest amount or percentage that is fixed by the particular credit company. In case the loan is not paid back in time, it will attract further charges. This rule is same all around the world and across all the credit companies.

The interest rates on loan amounts vary from one organisation to another. A person who has taken a loan from a particular financial institute will always be on the lookout for options that offer lower rates of interest. In case he finds other financial institutes offering lower interest rates he is bound to transfer the balance on the credit card from the present account to the new account with lower interest rate.

The different financial institutes as well as credit card companies attract customers by offering them 0% balance transfer options. With such offers the customer is given a chance to transfer his remaining credit balance to another account at zero percent interest.

How to benefit from 0 percent balance transfers?

When applying for zero percent balance transfer, there are certain essential features, which if focused on, will earn the greatest benefits. They are as follows –

1. Before applying for such a transfer look for accounts that offer the zero percent option for the maximum number of days. For example if a card company allows zero percent of interest on balance transfer for a period of six months while there is another that offers one percent interest over a period of one year, then always opt for the card that will charge zero percent interest for twelve months.
2. Remember the date on which the free interest offer expires and your loan amount starts to attract the usual interest rates. Look for other options and immediately transfer your credit to accounts with zero percent balance transfer. This will allow you to enjoy, interest free loan for a longer period of time.
3. Be very strict about the use of balance transfer cards. Do not use it for the transaction of other things except for balance transfer. This will help in maintaining a fixed amount as your loan amount that can get easily waived when you are ready to repay back the whole amount.
4. Ensure that you payback as much as you can at a time so that your debt gets paid off in time without incurring further interest rates.

In the present day when credit card and loan amounts are spiralling out of control due to the huge interest rates levied on them, zero percent balance transfer is the best way of waiving off your debts. An increasing number of debtors are using this system to lessen or completely pay off their debts.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.

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Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate info, however all info is presented without warranty. Consult a card's issuing bank about the terms & conditions.

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ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site.
Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site.
Compensation from our advertising partners impacts how and where their products appear on our site,
including, for example, the order in which they may appear within review lists.
Credit-Land.com has not reviewed all available credit card offers in the marketplace.

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